China cuts interest rate of 7-day reverse repos

BEIJING, Sept. 27 (Xinhua) -- China's central bank on Friday cut the interest rate of seven-day reverse repos from 1.7 percent to 1.5 percent.

The move aims at intensifying counter-cyclical adjustment of the monetary policy and supporting the stable economic growth of the country, according to a statement of the People's Bank of China.

The interest rate of 14-day reverse repos and those of temporary repos and reverse repos will continue to be determined by the interest rate of seven-day reverse repos in the open market, and the range of adjustment will remain unchanged.

The move came as part of the country's recent stimulus package to boost the economy, which also includes measures to support the property sector and the capital market.

The central bank conducted 278 billion yuan (about 39.66 billion U.S. dollars) of 14-day reverse repos on Friday at an interest rate of 1.65 percent, 20 basis points lower than the previous day.

A reverse repo is a process in which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

The central bank also announced a cut in the reserve requirement ratio by 0.5 percentage points for financial institutions on Friday.